Bruce Newton

Ford executives have announced that the short-term future of the Falcon is secure.

Ford remains committed to the production and sale of the Aussie-built Falcon despite sales falling below 20,000 for the first time in modern history in 2011.

However, senior Ford executives continue to hint that Falcon will be absorbed into a global large car strategy this decade.

Asked if the Falcon was sustainable at its current sales rate, Ford's president Asia Pacific and Africa Joe Hinrichs said: "At the current investment cycle that we are in the answer to that is yes."

He then added: "But not forever and we will have more to say on that over time."

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It is expected that in 2016 or 2017 the Falcon and its Territory SUV spin-off will merge with the US Taurus/Explorer, swapping from rear to front drive and ending more than 50 years of bespoke development and potentially ending Ford's local manufacturing operations.

Ford is expected to merge all its medium/large cars onto a single platform as part of its One Ford strategy that involves designing and building global cars, rather than vehicles for specific markets.

A significant step in that process will happen at the Detroit motor show next week when the next-generation mid-size Ford Fusion and luxury Lincoln MKZ are unveiled.

Hinrichs was speaking to Drive at a function in New Delhi, India, launching Ford's new compact SUV, the EcoSport, which is based on the tiny Fiesta city car and comes to Australia in 2013.

Hinrichs - who described himself as an "optimist" - said he believed Falcon sales should stabilise in 2012 and perhaps even rebound a little with the arrival of the EcoBoost four-cylinder turbocharged petrol engine that brings fuel savings over the six-cylinder that for decades has been the basis of the Falcon. It arrives in March, two months after the FG Series 2 update.

"We continue to invest in Falcon and it is obviously an important part of our portfolio," he said.

"Is it as important as it was five years ago? No. But it is still important to us. And we haven't lost sight of that, and Australia is a very important market to us."

Hinrichs cited several reasons for the Falcon's sales decline: Buyer departure from the segment and less fleet sales than expected (many fleets are abandoning large cars in favour or small cars or SUVs, which often have better resale values than Falcons and Commodores) were two of the most obvious.

Another was the lack of a dedicated LPG variant over the course of the year. Hinrichs admitted that Ford "made a conscious decision not to participate in some parts of that segment in the last calendar year".

He said Falcon's decline had played a key role in dragging Ford's overall market share lower in Australia year-on-year.

"So the most important thing we need to do is shore up that Falcon/Territory sales rate and continue to grow the incremental products that we have and are investing in; the new Focus for example."

Hinrichs predicted that Territory offered more sales growth potential than Falcon, reflecting the buyer swing to SUVs. However, he also foreshadowed its eventual demise as an independent product.

"We have just made major investments in Territory for a reason and we have intentions of that being part of the portfolio for significant years to come," he said. "I think eventually it won't sustain itself but that's not in the near term. "

At the same function, Ford's global CEO Alan Mulally said Falcon's declining sales were evidence of why Ford was on the right course adopting a single global platform for large cars.

"Global platforms, global scale, you can see why this strategy is so compelling and so competitive worldwide."

However, Mulally would not comment on the future of Falcon, Territory or manufacturing in Australia directly. The closest he came was to reiterate Ford's large car plans.

"We are going to have a Taurus-sized vehicle. Right now it is on a different platform to the Falcon, but we are going to have a large sedan going forward."

14 comments so far

As usual an article re the Falcon being dropped and it's replacement being front wheel drive brings out the usual idiot comments such - 'if Ford drop the Falcon I will buy a Camry', or 'if Ford only offer front wheel drive I will never buy a Ford again.' The writers of comments like that need to understand that manufacturers are building cars for the future and the designs and technology we have grown up with were for yesterdays conditions. I have owned many RWD Falcons both sixes and eights and I presently drive a FWD turbo six speed manual Mondeo and frankly it is the best Ford I have ever owned. Would I buy a Camry? - not on your life because it is nowhere as good as the Mondeo.

Commenter

tboman

Location

Melb

Date and time

January 06, 2012, 10:03AM

I'v had two Mondeos as fleet cars and they've been pretty decent except for one thing - the aircon. Can't beat a Falcon or Territory for that!

Commenter

Andy Evans

Location

Little River

Date and time

January 07, 2012, 1:51PM

"the designs and technology we have grown up with were for yesterdays conditions."

Wow they got rid of all the curves in the road! That's amazing.

I'd never buy a Camry. but I'd look seriously at the europeans

Commenter

ibast

Location

Prestons

Date and time

January 07, 2012, 7:55PM

And well done on winning the prize for the first mention of Diesel. Just which diesel would you put into Falcon (a multi, multi million dollar program)? The Territory 2.7D is only Euro 4, which knocks out the fleet customers that Falcon relies on. The Mondeo diesel, not used in any other RWD application so even more $ and time required. The LPi and Ecoboost get a similar green rating to diesel and so similar fleet sales, so I'm failing to see who the idiots are.

The Ford Dealers we buy from tell the same story, when they get people into a Falcon for a drive they buy one. That tells me styling isn't an issue and that you're subscribing excessive importance on your own personal preferences...

Commenter

Andy Evans

Location

Little River

Date and time

January 07, 2012, 1:46PM

Just to prove how out-of-touch are the lovers of the "big Aussie car", five years after Ford has discontinued the Falcon and Holden discontinued the Commodore, the V8 Supercar racing will still be restricted to Falcons and Commodores.

Commenter

Alan Jones

Location

Opera House

Date and time

January 07, 2012, 4:51PM

Yes, the Subaru Liberty looked great, but the latest model looks like a Maxima! Yuck. Ive driven a Maxima, it was okay, but the delayed throttle response was annoying. Pedal travelled too far before things started happening. Commodore has same issue. Falcon works instantly :^) And the juicy torque is there in spaaades.

Commenter

jmg

Location

Canberra

Date and time

January 07, 2012, 6:08PM

Why do we need to accept that the Taurus front wheel drive is superior, the Americans do not all appreciate this vehicle, hence they have retained the Mustang. The obvious world option is to combine Falcon with Mustang to create a RWD supercar in 2 and 4 door versions (2 doors = Mustang, 4 doors = Falcon) and distribute it world wide then sell Mondeo / Taurus to the accountants.

Commenter

Bigdog

Location

Date and time

January 08, 2012, 8:15AM

i own a mitsi lancer, a honda accord, a toyota corona, an isuzu d-max and a ford xr50 turbo ute and ford xr6 sedan...guess which cars i love to drive all day everyday? The fords.

Commenter

rajcharan

Location

Date and time

January 08, 2012, 9:32AM

To rely on Hinrichs/Mullaly & Co for their comments regarding the future of Falcon is absurd. All they do is look at figures and numbers during their endless meetings without true understanding for the reasons for sales decline of the Falcon.The Falcon is a great car. I've driven one during Xmas and avergaed 9.1 l/100. On one tankful I've managed to get 740km. In my book that's outstanding for a 4litre I6 engine.The reasons for falcon's decline are: no station wagon, no Fairlane/LTD, no XR8 (sedan or wagon), no sunroof as an option, etc. Ford management are slowly killing it.

Commenter

GregS

Location

Date and time

January 08, 2012, 11:34AM

It is so irritating and saddening to hear all the usual anti-"Falcadore" diatribe; surely it is blubbered by those whom have never actually driven one for anything more than a quick run down to the Pizza shop in mate's example. I do not understand why some of us are so anti-local. As Ford themselves well understand, the market for the big Aussie sedan is declining due to preference variably for smaller city-type vehicles or larger (higher) SUV-type vehicles inter alia. However, one hopes the Falcon and Commodore continue to be produced, albeit in smaller numbers/variants, since they certainly excel in their own niche. I have 3 children under 8 and we perform 1000's of kilometres annually on country highways. What other vehicle can fit three booster seats, a ton of luggage in the boot, overtake trucks effortlessly, return 7-9 L/100km, and cost mid-$30K brand new with almost ubiquitous service locations? I venture, none. These big Aussie sedans are unbeatable in the aforementioned application. Let's hope they are always available; their demise will truly mark a decline in our quality of living in this great free land.